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Agenda 05/26/2009 Item #12A Agenda Item No. 12A May 26, 2009 Page 1 of 4 EXECUTIVE SUMMARY Status Report to the Board of County Commissioners regarding the 2003 Agreement and promises made by the South Florida Water Management District with respect to the County's vacating approximately 287 miles of roads in the Southern Golden Gate Estates. OBJECTIVE: To give the Board background with respect to this matter and seek direction. CONSIDERA TIONS: On February 11, 2003 The Board of Trustees for the State of Florida voted to exercise the power of eminent domain over certain roadways in Southern Golden Gate Estates for Everglades restoration and one of the roads specifically named was the Miller Boulevard Extension, a County owned road. This matter was discussed at a March 11, 2003 Board meeting. On May 13, 2003, the Board discussed the lack of communication by the State about the Everglades restoration project and how the County needed to get some value out of any roads that were used for the project. .....-, On June 10,2003, Pam Mac'Kie, Deputy Executor Director for Land and West Coast Resources for the South Florida Water Management District ("SFWMD"), gave a presentation to the Board asking the Board to enter into negotiations with the SFWMD to vacate 287 miles of roadway representing approximately 2300 acres in the Southern Golden Gate Estates as part of the state and federal Everglades Restoration Project ("CERP"), a rehydration and restoration project. The matters discussed included: 1. The County would be sued in condemnation if it did not cooperate. 2. The benefits of the project included an increase in potable water supply to the County. 3. Concerns raised by the Board and public included: (1) loss of public access to these public lands, for recreational purposes, including A TV use; (2) whether the County would be entitled to mitigation credits for the donation; (3) and how existing private property owners were going to get to their property if the roads were vacated. 4. What would be included in a future agreement with the SFWMD, the County, and the state, including compensation for the vacated roads, mitigation credits for the County and recreation plans for the vacated lands. On July 29,2003, the Board was asked to approve a memorandum of understanding between the State of Florida, the SFWMD, Big Cypress Basin, and the County initiating vacation proceedings of the Southern Golden Gate Estates roadway system and the establishment of a 640 acre parcel suitable for recreational uses, including an A TV park. The matters discussed with the State included: ".,....-... 1. The County was repeatedly threatened that it would be sued in condemnation if it did not enter into this agreement. 2. The project would lead to 220 million gallons of water recharged into the groundwater, and would "sustain your cheap water supply into the future." Agenda Item No. 12A May 26, 2009 Page 2 of 4 3. The County would receive a full section, or 640 acres of land, for recreational purposes, including ATV use, to be provided with a "drop dead deadline" of October 2005. 4. The County was assured that access to existing private property owners would not be impaired. It was promised that "There will be in no, in no way, shape or form do we intend to limit or cut off their access." On September 3, 2003, the Board of Trustees of the Internal Improvement Trust Fund of the State of Florida petitioned the County for the vacation of the County's roadways in Southern Golden Gate Estates. On September 24, 2003, the Board approved a three-party agreement with the State and the SFWMD. Among other things, the Agreement provided that in exchange for the vacation of the County's roadways, SFWMD would convey, or cause to be conveyed, at no cost to the County, fee simple interest to 640 acres, more or less, of unimproved land to the County no later than October I, 2005, suitable for recreational purposes, including A TV use, with the County having the right to reject if the proposed land was not acceptable. In that same meeting the Board by Resolution No. 2003-336 vacated the road right-of-ways. During discussion of this item, SFWMD made the following statements: 1. The roads which accessed private property would remain improved and above-grade. 2. That no changes to the Agreement were authorized as it was already approved by the Governor and cabinet. 3. The County was again threatened with condemnation if it did not enter into this Agreement. 4. The County was assured by the State Division of Forestry that it would "focus their efforts" and work towards providing in the recreational component of the Picayune Management Plan an area for recreational purposes, including ATV use. On June 14,2005, SFWMD offered the County 625.28 acres adjacent to Lake Trafford, available to the County in 2008 after the Lake Trafford dredging was complete, to meet its 640 acre commitment. It appears that as early as August 2000, the Army Corps of Engineers was aware the site contained contaminants. SFWMD had purchased the property on August 24, 1999. On September 27, 2005, the County rejected the Lake Trafford site because following the June 14, 2005 Board meeting, SFWMD provided a copy of a subsequent evaluation of the site that found the arsenic and selenium found in several samples from the lake exceeded soil clean-up target levels established by the Florida DEP. SFWMD planned to use 384 of the proposed 625.28 acre site to store dredge material. Between June 2005 and the present, SFWMD has not provided a suitable 640 acre recreational site and is in breach of the 2003 Agreement. ....-, Since the September 23, 2003 Agreement, the County has had to defend two inverse condemnation lawsuits involving loss of access because of the vacation of the roadways. Despite numerous requests, SFWMD and the State have refused to hold Collier County harmless in these suits, resulting in this Office needlessly having to expend substantial time and effort in Agenda Item No. 12A May 26,2009 Page 3 of 4 the defense 0 f these suits. The first lawsuit brought by the Nobel- Doerrs was concluded by the State paying them approximately $3 million dollars. The second lawsuit is still pending. The County has until October 1, 2010 before it must file suit to protect its legal rights under the Agreement. After the date, the Statute of Limitations will foreclose such a suit. FISCAL IMPACT: Any suit against the SFWMD would be handled in-house to minimize costs. GROWTH MANAGEMENT IMP ACT: None. RECOMMENDATION: If requested, the County Attorney will make a recommendation following discussion with the Board. A copy of the transcripts was not included given their voluminous nature. PREPARED BY: Jeffrey A. Klatzkow, County Attorney Jacqueline Hubbard, Litigation Section Chief ,,"'-"" Page 1 of I Agenda Item No. 12A May 26, 2009 Page 4 of 4 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: Item Summary: 12A Meeting Date: Status Report to the Board of County Commissioners regarding the 2003 Agreement and promises made by the South Florida Water Management District with respect to the Countys vacating approximately 287 miles of roads in the Southern Golden Gate Estates. 5/26/2009 90000 AM Prepared By Jacqueline W. Hubbard County Attorney Assistant County Attorney County Attorney Office Date 5/20/2009 9:57:10 AM Prepared By Jeff Klatzkow County Attorney County Attorney County Attorney Office Date 5/20/20099:57:10 AM Approved By Jeff Klatzkow County Attorney County Attorney County Attorney Office Date 5/20/2009 11 :30 AM Approved By Leo E. Ochs, Jr. Board of County Commissioners Deputy County Manager Date County Manager's Office 5/20/20095:40 PM file:/ /C :\Agenda Test\Export\ 130-May%2026, %202009\ 12. %20COUNTY%20A TTORNEY... 5/20/2009